Meta creates new non-voting share class to fund AI push
The stock will also pay for acquisitions and employee compensation, with trading starting in 2027.
Money#07
$135B-$145B
Expected capital expenditures this year
Image: The Verge
$135B-$145BExpected capital expenditures this year
The short version
- Meta says it is issuing a new class of non-voting shares to fund its AI initiatives.
- The company announced the shares in its third-quarter earnings report, released on Wednesday.
- Meta also expects capital expenditures between $135 billion and $145 billion this year, up from its previous estimate of $130 billion to $145 billion.
- Meta launched its AI agent, Muse, in September, and the app hit 10 million downloads in the US this week.
Why it matters
The move shows how much capital large AI builders now need for data centers, talent and models. It also signals that funding for AI is moving into new financing structures. Developers should watch how Muse's privacy problems are handled as agents get more access to personal data.
“The scale of investment required to compete, sustain growth, expand infrastructure, and pursue new strategic initiatives amidst the AI transformation taking place in the industry is significant”